Bitcoin spot ETF will not be a game changer: JP Morgan | CoinDesk JAPAN | Coin Desk Japan

Even if the U.S. Securities and Exchange Commission (SEC) approves a Bitcoin (BTC) Exchange Traded Fund (ETF), it won’t be a game-changer for the cryptocurrency market for many reasons, says JP Morgan. JPMorgan) said in a July 6 research report.

Although the SEC has yet to approve the ETF despite receiving numerous applications, it is now believed that the SEC will soon approve the ETF as some of the previous concerns have been addressed with recent filings. JPMorgan says there is growing optimism about that.

“Spot bitcoin ETFs have existed outside the US for some time in Canada and Europe, but have failed to attract significant investor interest,” said JPMorgan analysts led by Nikolaos Panigirtzoglou. I didn’t.”

A division of BlackRock filed for a Bitcoin ETF in June, and other asset managers, including Invesco and WisdomTree, have filed and re-filed.

“Bitcoin funds as a whole, including futures-based and physical-backed funds, have seen little investor interest since Q2 2021, benefiting from investor outflows from gold ETFs over the past year or so. were not received,” the report said.

Physically-backed bitcoin ETFs offer some advantages over futures-backed funds, but JPMorgan says they are marginal. Spot ETFs offer a more direct and secure way to gain exposure to Bitcoin, removing the complexities around storing and transferring BTC and the risks associated with futures-based products.

“Spot ETFs are more likely to reflect real-time supply and demand than futures-based ETFs and, if approved in the US, would increase liquidity and price transparency in the spot Bitcoin market,” the report said. written in the book.

According to JP Morgan, the introduction of a spot Bitcoin ETF could lead to a shift of trading activity and liquidity from the US Bitcoin futures market “to the extent that it replaces futures-based Bitcoin ETFs.”

｜Translation: CoinDesk JAPAN
｜Editing: Toshihiko Inoue
| Image: Nikhilesh De/CoinDesk
｜Original: SEC Approval of Spot Bitcoin ETF Is Unlikely to Be a Game Changer for Crypto Markets: JPMorgan